«Market Leader» - news and previews making you rich.

Thursday, 24 April 01:09 (GMT -05:00)


Market Leader Free Newsletter
Your Name:
Your Email:

Business And Politics News

Will Islamic banks become the rivals of Rothschild and the banks of USA and EU?


Bank news. Recently an interesting article under an intriguing title “Rothschilds against Arab rulers” has appeared on a web-site islam.ru. Although a number of analytics have perceived it as a continuation of the threadbare theme about the worlds behind the scenes, which is interesting only to the old-timer conspiracy theorists that are likely to perceive almost in anything “the long arm” of secret societies, organizations, families, or clans. The present article has irrevocably been referred to the whole regiment of similar creations from the range of “Rothschilds rule the world”, if it had not been for one “but”. It remarks a truly interesting idea that in critical conditions the western banking system has faced a strong rival, represented by Islamic banking. In order to conquer it, the western banking system has started revolutions in Arabic world. Beyond any doubt, this quite interesting hypothesis needs comments.

What is the point of Islam banking?

As the community experts of Islamic countries of Masterforex-V Academy note, the so-called Islamic banks are still one of the most mysterious phenomena in the world’s financial system:

1. Islamic bank is one of the institutions, created on the basis of Muslim rights concepts, where the most significant place is occupied by a ban on usury. The usurer himself falls into sin as well as the person who benefits from his services.

2. This means that Islamic banks entirely refuse from collection of interest and futures transactions (they are also under a strong ban on the Koran).

3. The major ban in Islamic banking system is the ban on time games. In other words, it is impossible to pledge future time for the present speculative business.

4. Moreover, Islamic banks adhere to the strongest ban on gambling. They cannot participate in lotteries or any other similar actions.

5. All deposits of the population are interest free.

6. Consequently, a ban on collection of interest from loans (riby) and a refusal from intended risk (garara) is the main difference of Islamic banks from western. Therefore, interest crediting and speculative business at fund and currency markets are not practiced.


Islamic bank is an investor-bank.

 

As a matter of fact, the present Islamic bank deals with project investment, sharing every possible risk with its clients. It cannot insure its investments. Jointly with borrowers, Islamic banks suffer losses on the projects, in which the funds have been invested.

It is for this reason that the bank carefully examines its future client, gets acquainted with its business-plan, allows itself to give advice. The bank is interested in the success of a started business not less than the person who addressed the bank for help.

Consequently, Islamic bank is oriented on real production, but not speculative business.

Credits for personal needs and credits for business development, received in Islamic banks, have considerable differences. Both of them are interest free, but in the second case the bank and the businessman sign an agreement, according to which profit as well as loss shall be shared.

Ordinary investors can also sign an agreement with the bank, entitling it to use their funds as investments (mudaraba) or refusing to give such privilege to the bank. In case of agreement, the investor shall receive his share in profit (from a successful transaction) or, vice versa, shall suffer certain losses. However, the particular feature of such transaction is represented by a total acknowledgement of the investor about the sphere, in which his money is involved. He is certain that these funds have not been involved in activities that are banned by Shariat (the production of alcohol, drugs, prostitution, gambling, pork processing and its trade, etc.).

Despite all the “ingenuity” in their operation, Islamic banks do not become bankrupts and even obtain considerable profit.


How do Islamic banks earn?

This definitely is a very important question. By refusing from the western system, which is based on usury, Islamic banking initially puts itself in a losing condition in comparison to the former. There arises a question: “By which means can there exist a bank that does not collect interest?”

1. Real property resale by installments. Instead of giving a loan to the client for the purchase of housing, the bank buys it and later sells it to the client by installments, but at a higher price. It is not considered to be a collection of interest, but a certain payment for the risk.

2. Participation in the funding of projects for a certain share in profit. Consequently, Islamic banks, unlike western, are aimed not at receiving maximum profit, but at creation of additional value.

3. Islamic banks also practice such transaction as murabaha. In other words, they deal with purchase and sale. According to an agreement with a client, the bank purchases certain goods for sale. In this case the bank can deal with marketing, transportation, storage, the sale itself.

4. Granting of a special credit "sukuk". The bank receives its percentage not from a granted amount but from the profit of an indebted company.

5. Islamic banks also actively deal with security papers, but are represented more like bidders.

6. Many faithful Muslims pay zakiattax on wealth. This is demanded not by the state, but by Shariat. Zakiat is a solely voluntary action intended to help the poor. In such a case, the faithful most frequently bring these funds into Islamic banks.


Is Islamic banking conquering the world?

 

The first Islamic banks appeared in Middle East slightly earlier than 30 years ago:

At present they are represented in 75 countries of the world (not only Islamic).

Their mutual resources amount to more than 300 billion dollars.

According to some assessments, the quantity of Islamic investments in the worlds economies has reached the amount of 400 billion dollars.

The volume of transactions in the international Islamic banks system undergoes a yearly growth of 15%.

Islamic banks confidently enter the worlds financial market, where the establish partnership with the worlds largest banks.

• Deutsche bank, Citibank, HSBC open special Islamic departments. Citibank has opened a specialized section. So-called “Islamic windows” operate in many European and American banks. However, in the last case there exists a considerable risk for a faithful Muslim that his money can be mixed with non-halal (impure) money, which is received from criminal.

Islamic banks have almost not suffered from the worlds financial crises, having demonstrated the highest effectiveness. Therefore, the present Islamic banking system is making considerable steps towards integration into the world’s financial system. At the same time, the largest western banks do not show hostility towards it (openly at least) and meet its needs in every possible way. The West is bond to take into consideration the billion of Muslims and their values.


Talks about the efforts of the West to “crash” Islamic banking by means of “Arabic revolutions” are no more than exaggerations. The only example with the first Tunisian Islamic bankZituna”, which after the revolution has been engulfed by Tunisian Central Bank that is under the control of the Rothschilds, is not very persuasive. At the same time, Americans were doing their best to save the overloaded with Islamic banks Bahrain from revolution. UAE and Saudi Arabia, where only Islamic banks exist, are predominated by peace and stability. However, in “revolutionary” Egypt and Tunisia only several financial establishments of this kind exist. At present, the same can be related to uneasy Yemen and Siria.

 

For a more objective assessment of the situation, the staff of the magazine "Market Leader" suggests a questionnaire in trader’s forum: in your opinion, for the western world Islamic banking system is:

an excellent solution of a difficult situation;

a real threat;

just an interesting exotica.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Settlement between Microsoft and Nokia will be shut this Friday, as stated by Optionova

This week at last will be shut a settlement between Microsoft and Nokia. Programming Organization purchases the Finnish organization's versatile division. "Settlement of the Century", as it is called by a few experts, will be shut on the 25th of April, this Friday. Furthermore, on the 29th of April, Nokia will entirety up trimestral results. Specialists of binary options broker Optionova will tell about it in details. 

Publication date: 23 April 07:04 AM

Apple and Google will battle for the right to be the first in supplying diversions and requisitions, as they assume in Optionova

Apple and Google went on the war way for the vicinity of singular gaming requisitions in their working frameworks. Designers are urged to earnestly advertise faithfulness. It is accounted for by The Wall Street Journal (WSJ) alluding to educated sources. The subtle elements will be told by binary options broker Optionova. 

Publication date: 22 April 10:08 AM

Shares of Google, as stated by Optionova, fell after the production of the quarterly report

Google discharged its fiscal effects for the first quarter of 2014. Markers have been expanded contrasted and the same period a year prior. Notwithstanding, certain variables befuddled gurus such a great amount of, that in the wake of summing up, the shares on the stock trade fell. Why did it happen, examiners of binary options broker Optionova will retell of it.  

Publication date: 18 April 12:28 PM

Specialists of American doctor's facilities started to utilize Google Glass, as it got known to Optionova

 A standout amongst the latest improvements in Information Technology - Google Glass - just about promptly after all vital tests turned into a prominent item in the Internet space. Occupants of numerous nations like to investigate all the upsides and downsides of this advancement, and at exactly that point because of the consistent screening to discover the date of the arranged section into the business sector of unique glasses.

Publication date: 14 April 04:33 AM

Saudi Arabia Destroyed USSR: Can It Destroy Russia?

 

Some Western experts say they have found Russia’s heel of Achilles. The USA thinks the best way to press Putin is to manipulate oil prices since Russia is an export-oriented economy. In particular, it depends on oil and natural gas exports. Therefore, too weak prices may finish the Russian economy, US politicians believe.
 
The experts say that Saudi Arabia may help the USA and the West in general to implement this ambitious goal aimed at undermining the Russian economy, which depends on energy exports.
Publication date: 08 April 11:40 AM

In Optionova they figured out, that in several years Apple will speak to a "transparent" iphone

 The USA IT- goliath Apple affections to patent different developments. Regularly these licenses are never utilized, however the thought stayed for possible later use. Then again, in some cases the organization deliberately enlists that will be utilized within its future overhauls. As of late it got realized that Apple needs to get records on the transparent Savvy. Examiners of paired alternatives intermediary Optionova will tell the subtle elements.

 

Publication date: 02 April 08:29 AM

Sanctions Against Russia and Consequences For Ruble, Dollar and Euro

 

The EU promises to impose tough sanctions on Russia, thereby following into the USA's steps. The leaders claim Russia will have to pay for annexing the Crimea, which used to be a part of Ukraine. These sanctions are promised to be divided into several packages and rounds to introduce them gradually. The ultimate goal seems to be a complete breakup of all the economic and political relations with Russia.
 
Market Leader and Masterforex-V Academy tried to figure out the possible consequences of these sanctions for the involved economies and their national currencies.
 
Publication date: 28 March 06:38 AM

As it turned out by Optionova, Google will secure Gmail clients from the security administrations and spies utilizing extra encryption

  

Google normally upgrades its email administration Gmail. This time, the Internet giants protected its clients from the security administrations. To build security, the whole trade of letters was exchanged to a protected HTTPS- convention. Unapproved persons have no right to gain entrance to Google's servers to the conveyance. About the preferences of this strategy will let you know about the investigators of double choices by the representative of Optionova. 

Publication date: 27 March 05:38 AM

George Soros on Ukraine, EURUSD Prospects

 

It seems like the entire world is currently watching and discussing the situation around Ukraine and the Crimea (which was recently joined the Russian Federation after the local referendum).
Publication date: 24 March 10:30 AM

EU Abandons South Stream, Consequences For Europe, Russia and Natural Gas Futures

 

It is common knowledge that the EU has always complained about the South Stream, long before the Ukrainian crisis. These complaints are based on Europe's desire to preserve its energy independence and to get cheap (or almost free) energy sources from outside (since there are no domestic energy sources).
Publication date: 20 March 12:43 PM